2019 – Issue 6 Volume 202 The magazine for members of the Dutch Chamber of Commerce in Hong Kong Interview with a Chief A special interview with the Dutch Maestro Jaap van Zweden who leads the Gramophone 2019 World’s Best Orchestra, the Hong Kong Philharmonic Orchestra Lead Story Douglas So, Founder and Director of F11 Foto Museum and Marcel Heijnen, Professional Photographer talk about how they see ‘leadership’ within their creative industry DUTCHCHAM MAGAZINE 4 14
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2019 – Issue 6
Volume 202
The magazine for members of the Dutch Chamber of Commerce in Hong Kong
Interview with a ChiefA special interview with the Dutch Maestro Jaap van Zweden who leads the Gramophone 2019 World’s Best Orchestra, the Hong Kong Philharmonic Orchestra
Lead StoryDouglas So, Founder and Director of F11 Foto Museum and Marcel Heijnen, Professional Photographer talk about how they see ‘leadership’ within their creative industry
DUTCHCHAMMAGAZINE
4
14
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ContentsEditorial CommitteeRogier van Veldhuizen
Maarten Swemmer
Monique de Raaij
Annemarelle van Schayik
Mike Spaan
EditorDonna Mah
Desktop PublisherR&R Publishing Ltd.
General ManagerMuriel Moorrees
Cover PhotoEric Hong
AdvertisersABN AMRO BANK N.V.
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The magazine for members of theDutch Chamber of Commerce in Hong Kong
Suite 3002, 30/F, Central Plaza
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Special thanks to APC for their generosity in kindly distributing the DutchCham Magazine in Hong Kong, China, Asia and the Netherlands
This magazine is distributed free of charge to all members and relations of the Dutch Chamber of Commerce in Hong Kong. The content of this magazine is largely based on information from third parties. The editors do not necessarily agree with the views expressed therein. All rights are reserved by the Dutch Chamber of Commerce. Permission may be granted for reprints in any format upon request.
3 Chairman’s Note
4 Interview with a Chief Jaap van Zweden Music Director, Hong Kong Philharmonic Orchestra
8 News & Views
13 Go Green
14 Lead Story Engaging with women in the workplace
18 China Focus
19 Tax Focus
20 Passport to Hong Kong
22 Passing the Pen
23 Events
26 New Members’ Corner
27 Enquiries and Information
28 DutchCham Information
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Can you see it in your mind’s eye?
Imagine…that we can produce more food without overtaxing the earth. That we revive agricultural land and waste fewer resources.
Imagine… that no one has to leave their home to fl ee famine. And that there are fewer confl icts.
Now imagine…that it is a bank working towards this vision.A bank founded by and for farmers,that understands you can achieve more together, and knows all about food and how to grow it.
Imagine…that we help kick-start the smartest innovations by our customers and partners on a global scale. And jointly address the biggest food issues on six continents.
Imagine…that we can solve the world food problem together. And you can count on us.
Imagine...that there is enough healthy food for everyone.
Growing a better world together
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Chairman’s Note
The theme of this issue is ‘leadership’ and according to Wikipedia, “Leadership is both a research area and a practical skill encompassing the ability of an individual or organisation to ‘lead’ or guide other individuals, teams, or entire organisations. Specialist literature debates various viewpoints, contrasting Eastern and Western approaches to leadership, and also (within the West) United States versus European approaches.” Being a Dutch Chamber based in Asia, there is enough to fill this magazine with insights on leadership from both Eastern and Western perspectives!
The Interview with a Chief is with Jaap van Zweden, the music director of the Hong Kong Philharmonic Orchestra (HK Phil) and of the New York Philharmonic. The HK Phil was named Orchestra of the Year at the 2019 Gramophone Classical Music Awards ceremony – regarded as the “Oscars of classical music” – in London in October for its outstanding contribution to recorded music in the past year. The Dutch Chamber congratulates HK Phil being the first Asian orchestra to receive this prestigious international award.
The Lead Story is with Douglas So, the founder and director of F11 Foto Museum, and Marcel Heijnen, photographer of the famous Hong Kong shop cats book. F11 is located in Happy Valley a fully restored three-story heritage building from the 1930s. Whilst the building is a gem in itself, don’t miss the current exhibition “Hong Kong ... the way it was”, showing over 130 photos by Ed van der Elsken. Van der Elsken captured the images of Hong Kong during a three-week stay in the city in 1959-60. The exhibition runs until 28 February 2020.
The Dutch Chamber’s China Committee hosted its sold-out China Seminar on 21 November, with leaders from Robeco, ING, SHV Energy China, Expertise Asia Limited and NOS News as guest speakers and panellists. The theme was “China’s New Norm: the Reality, Opportunities and Risks” and provided attendees with practical insights on the reality of doing business in China.
I look forward to welcome you all during the Annual Christmas Cocktail on 10 December in Spark Bar & Restaurant, or at the third Roundtable luncheon on 11 December, for corporate members, where we discuss the current socio-political situation in Hong Kong (limited seats available).
Wishing you happy reading, and all the best for the upcoming festive season!
DutchCham Board of Directors
Mrs. Maaike van Meer Chairman
General Counsel at Aegon Asia
Mr. Michael van OmmerenVice-ChairmanChairman of the Finance Committee
Mr. Arend OldenzielTreasurerPartner, Financial Services KPMG
Mr. Michiel MakChairman of the China CommitteeCEO of EMCS Limited Hong Kong
Mr. Jan Willem MöllerChairman of the SME CommitteeRegistered Foreign Lawyer at Tanner De Witt
Ms. Rinske KuiperChairman of the PR and Pub CommissionGeneral Manager SofaSale
Leadership
Maaike van MeerDutchCham Chairman
DutchCham Advisory Board
Ms. Annemieke RuigrokChairmanConsul-General of the Kingdom of the Netherlands
Mr. K. K. YeungChairman of KK Yeung Management Consultants Ltd.
Mr. Paul ZimmermanFounding member of Designing Hong Kong &Southern District Councillor
Mr. Dennis ZiengsFinancial Advisor / formerly CEO Asia of Fortis / Ageas
Mr. Lodewijk Lamaison van den BergFounding Partner at The Capital Company
Mr. Daniël de Blocq van ScheltingaManaging Partner of Polarwide Ltd.
DutchCham Office
Mrs. Muriel MoorreesGeneral Manager
Mrs. Helen YongOffice and Administration Manager
Mr. Rogier van VeldhuizenCommunication & Events Manager
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e met with Jaap and a couple of his colleagues on a sunny Saturday morning to speak with him about the HK Phil, his role as the orchestra’s director and, of course, leadership.
We started off by talking about the HK Phil and he shared that he has always found Hong Kong to be a very open place where the HK Phil players are always willing to put their efforts into attaining ever higher goals. For Jaap, he sees his job as not to lead the orchestra, but “to bring out the best” in each musician with his experience, knowledge and humour.
By Donna Mah
Interview with a Chief
HK Phil’s Gramophone award is a first for Asia. “Being an orchestra a little bit outside of the main classical streaming world – Europe, the US – what you see now, I think and I hope, that in Asia the quality of great orchestras is going to pick up. This is due to the dedication of the players, the talent of the young people and also the discipline, how children are raised here. And also the respect they have for classical music. When you combine all these things together, you have all the ingredients to become a top orchestra. This actually has happened with the HK Phil because they met the challenge to reach a level that can be compared to any top orchestra in the world.”
He went on to elaborate that it is something that is what he carries with him, in his mind, in his heart, in his veins that he has wanted to develop that with an orchestra like the HK Phil has done since he joined. Standing in front of this group of people willing to bring the best out of themselves.
“When you look at the big lines, the overall quality you want to reach stands or falls with the smallest details. I think if you really focus on the smallest details you realise that that actually makes a great performance, it gives it strength. In order to reach 90% of what we would like to reach, we need to prepare 110%,” said Jaap.
“Freedom is earned and comes from discipline. There are moments where we spend time preparing and then there are moments when we perform. Through preparation, we are able to have the freedom to perform.” He went on to explain that when the orchestra is preparing a piece, he doesn’t want them to dwell on the technically difficult parts but to tackle them. The key, said Jaap, lies in the preparation. “I can be very demanding. It’s not personal.”
During our conversation, he observed that he considers the HK Phil a family. As an orchestra family they have a history together, and a little bit of that history becomes part of each performance. “When we celebrate, we do it together. When there is a problem, we manage it together. When there is illness, we deal with it together. As you do in any family,” he said.
Jaap has been consistent with his message over the years that he would like the HK Phil to be best ambassador for Hong Kong. During our conversation, he compared Hong Kong to that of a beating heart with many chambers, adding that strong chambers make a heart strong. According to Jaap, Hong Kong’s heart has a business chamber, a people chamber, a sports heart and a developing art chamber which has in it ballet, arts, West Kowloon and more. “We are really proud to be a part of this heart.”
Bringing out the bestJaap van Zweden, Music Director at the Hong Kong Philharmonic Orchestra (HK Phil), has helped to lead the orchestra to a new height in the international classical arena by winning the prestigious Gramophone Orchestra of the Year 2019 award.
WP
hoto Credit: S
ophie Zhai
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Strong belief in your teamFrom the start of Jaap’s tenure at the HK Phil, he has been adamant that as a group, a family, the orchestra would not replace people. He wanted to work with the talent and people that was already part of the HK Phil family and that he has a strong belief in every individual player – that they should have strong belief in themselves. If something is not working out, they work on it until it does work out – it is what they want to hear.
“We are strong enough to help each other and inspire each other to fix it. That is what makes an orchestra really strong,” he said. “When you get rid of people, it causes anxiety. Everybody needs to feel safe. This doesn’t mean we didn’t have issues that we addressed. No one wants to be behind. They want to be part of the group,” he explained. By motivating and inspiring the orchestra to work on issues and attain a higher level, Jaap said that they built a strong feeling, that “we are getting there”.
“The best leader is one who is almost invisible,” he said. “If there is a quality issue, it is better to inspire each other to fix it.”
As a former orchestra musician himself, Jaap played the violin, he has never forgotten an oft repeated saying by orchestra musicians, “If the orchestra has success it is because of us. If the orchestra is not doing well, it’s the conductor’s fault.” His experience as a member of an orchestra and as a conductor give him a better understanding of the different viewpoints.
Respect the musicJaap travels a great deal for work, he’s also the Music Director of the New York Philharmonic, and that comes with a number challenges as well. He mentioned that sometimes he wakes up in a hotel and is unsure of exactly where he is.
The travel can be physically demanding, but what he finds more challenging is bringing the different styles of music with him to the orchestra. He is responsible for conveying the meaning, the time when the music was written (“it was a different world”), the story behind the music, to the orchestra so that it can be shared with audiences.
“Always respect that the music comes from a different time. There are so many styles. Don’t make a Brahms symphony into a Mozart symphony,” he said. “We need to be a chameleon of styles.” This is what needs to be conveyed to the orchestra, and with all the different styles, one needs to keep learning and have many different styles under one’s belt.
When looking at the upcoming HK Phil performances, audiences will find that there is usually something for everyone. The musicians work on the music daily, weekly, monthly and Jaap describes the group as “an orchestra which is open to the next step and taking those next steps.
International sound and new experiencesThere were a number of things that Jaap wanted to achieve when he joined the HK Phil. One of them was to have the orchestra tour more.
Interview with a ChiefP
hoto Credit: K
a LamP
hoto Credit: C
hristine Cheuk
“We are strong enough to help each other and inspire each other to fix it [something that is not working]. That is what makes an orchestra really strong.”
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Interview with a Chief
“We strongly believe that to have an international sound, you must go international,” he said. “We want to be the best ambassador for Hong Kong. We wanted to raise our level to an international one, and we have done this.”
Jaap stressed that it was not the work of one person that helped the orchestra win the Gramophone award, it was the work of the entire team – everyone contributed.
“I ask of the orchestra the same of what I ask of myself,” Jaap said when asked about his leadership style. He said that the conductor, he understands that he has a responsibility, a huge responsibility, to the composer, to the musicians you work with and especially to the audience who buy tickets, take the time and energy to attend concerts. It is a combination of many things that makes a performance successful, but an orchestra should never forget that without an audience, the orchestra would not exist.
“You should not disrespect your audience and underestimate them. They are interested in different kinds of music – including pieces from contemporary and local composers,” he said. He compared what orchestras offer to having an excellent meal. A full meal with a good starter, perhaps a nice soup, a main course and then a fantastic dessert, each dish is appreciated and then you move on to the next one. Sometimes the dishes may be challenging, something we don’t normally eat, but Jaap believes that people, whether they are the chefs/musicians or the diners/audience, like to be challenged with new experiences.
Every composer is inspired by other composers – from long ago until today. Jaap posed a question himself during our conversation
and asked, “Is there DNA from Bach in Philip Glass?” and then answered his own question with a sure, “Yes! There must be.”
Making happiness is successJaap believes that creating happiness makes people happy, that it will all work out. He explained that the Dutch word “gelukkig” meant “happy” and that “lukken” meaning to “succeed” or “work out” was part of “gelukkig”. If you can be happy with yourself, then you can be happy with others.
Jaap added that being in front of an orchestra is “not a feeling of power, but it is a powerful feeling” as power can be misused. When the HK Phil creates this powerful feeling together, when they have successes, everyone feels it. This is important as we go back to Jaap’s comment about small details, if someone is not together with the group and is not experiencing the powerful feeling, then it is something that can be felt in the performance and in the organisation.
“How the people in the office present the HK Phil, this organisation, is part of our success,” he explained. “It is part of why we won this award.” The success or failure of anything, including the HK Phil, is a “combination of everything!” – it’s the whole package, not just one person.
Photo C
redit: Cheung W
ai-lok
“I ask of the orchestra the same of what I ask of myself,” Jaap said when asked
about his leadership style.
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1 July 1944 – 7 November 2019
Frank van Ginkel was a passionate and involved member of the Dutch Chamber of Commerce in Hong Kong. Being a long standing member, since the founding of our Chamber in 1991, he was a frequent and welcome guest at our events throughout the years. Many of our members may also remember Frank for his passion for hockey; he founded and participated in the ZOAT Hockey Tournament for many years.
We will miss Frank dearly. Rest in peace.
The Dutch Chamber of Commerce in Hong Kong
In Memory Of Frank van Ginkel
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ransformations are no longer fixed and anchored towards a single point-in-time, but instead flexible and continuous in order to manage greater levels of uncertainty and market dynamics. Employees can be
left feeling demotivated and become less engaged over time. As a result, adopting the Agile approach remains to be a challenging task for larger organisations, where workplace culture and resistance to change continue to be cited as one of the top reasons. Employee resilience could hold the key to sustaining the steady pace of change, requiring a shift in focus towards people, rather than frameworks.
Empirical studies have shown that an individual with a higher level of psychological capital, specifically resilience, is more likely to be engaged in the workplace and be more adaptive to change. Furthermore, resilience is also an area of personal development which is malleable or able to be positively influenced by interventions such as training, coaching and daily practice.
Wagnild, who developed the oldest resilience scale in 1993, describes five domains of resilience . Each domain strongly aligns to the Agile manifesto.
Purpose – “Highest priority is to satisfy … through early and continuous delivery”Ensuring the continuous delivery of new products and services, requires a sense of purpose which is often articulated as a product vision or within sprint goals. Being able to intrinsically source and harness a sense of purpose becomes more important, especially as a self-organising team.
Perseverance – “Responding to change”Whilst Agile provides a methodology for dealing with uncertainty, our ability to keep going and respond to change is core to its manifesto. Perseverance enables teams to continuously deliver at a steady pace, addressing impediments or setbacks, and continuing to move forward.
Composure – “Sustainable pace” and “reflection”By remaining calm in difficult situations and having a balanced view of the world around us, we can moderate the extreme responses to adverse events or changes. In times of change, this is often useful when reframing problems or facilitating conflict resolution. In addition, composure allows us to understand perspectives, empathise with customers, accept late changes and sustain a steady pace.
Self-reliance – “Self-organising teams”Believing in one’s self in order to support the wider team, is another ideal characteristic of resilience in self-organising teams. Being able to know one’s self, recognising strengths and drawing on past successes, can be a powerful aid in creating high-performing Agile teams.
By Paul Oh, Senior Consultant at WhyInnovation, [email protected]
Authenticity – “Reflection and motivation”In the workplace, being authentic to one’s self can sometimes be challenging. For example, being directed to complete a task which may involve confrontation or in some cultures, a greater sense of duty to hierarchy. Agile places great value in the interactions and collaboration with others. For this to truly be effective, being authentic is crucial in these conversations.
Actively seeking to build resilience of individuals or teams needs to start on a foundation of trust. Some initial steps to consider:
1. Assess and build competence• Empirically measure the competency areas or domains of resilience• Create awareness and a common language around resilience• Build resources within teams (e.g. knowledge bases and support
networks)
2. Reflectandbounceback• Ask powerful coaching questions such as “What did we learn about
each other?”• Reflect on how adverse events were handled • Incorporate resilience practice (e.g. reframing or controlled dissent
activities) within team ceremonies
13th Annual State of Agile Report, May 2019 https://www.stateofagile.com/?_ga=2.80785495.1555130328.1568509948-860590960.1568147527#ufh-i-521251909-13th-annual-state-of-agile-report/473508Psychological Capital: An Evidence-Based Positive Approach, April 2017 https://www.researchgate.net/publication/312960414_Psychological_Capital_An_Evidence-Based_Positive_ApproachThe Resilience scale https://www.resiliencecenter.com/products/online-resilience-assessments/resilience-assessment-for-adults/
Driving Agility by Building ResilienceA lone tree stands in an arid wasteland, defiant from its surroundings and persistent in surviving against all odds. This is the nature of resilience – the ability to bounce back from adverse events and persevere to not only survive, but to thrive. For leaders, it has become an imperative to guide their teams in moving quickly through the learn-build-measure cycle.
T
Paul Oh
News & Views
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News & Views
ome companies, like Unilever, tell us that it is a core part of their business. It will be interesting to see next year to what extent Unilever has reached the 2020 goals which it set in 2009.
Environmental leadership is a hot topic for consumers and this makes it a big marketing and branding opportunity for companies. Supermarket chains in The Netherlands have pledged to reduce the number of products packed in plastic in supermarkets by 20% by 2025. It seems there is increasing rivalry between supermarket chains with regards to packaging reduction. For example, supermarket chain Albert Heijn claims it will reduce packaging materials in general (not just plastic) by 25% in 2025. With increasing consumer focus on the environment, some companies are starting to show environmental leadership. When the environment becomes a marketing and branding tool, unfortunately this also opens the door for ‘greenwashing’. Greenwashing is the practice in which marketing spending is used to make products or a company’s brand look greener than they are, for example, by telling only part of the story. Even with the best intentions, many companies struggle with the conflicts between environmental leadership and justifying the bottom line to shareholders.
On a higher level, countries and their governments have struggled with environmental issues for ages. In 1979, the first World Climate Conference was held. It took until 1997 for a response was made to climate change when the Kyoto Protocol was initiated. This did not hold any real commitments until the 2012 Doha amendment to the Protocol which held binding commitments for 37 countries. While that sounds nice, it never went into effect, because only 134 of the required 144 states accepted it and only 7 of 37 countries with binding commitments ratified it. The 2015 Paris Agreement seems to have a bit more body. However, despite commitment and EU rules to back them, The Netherlands will most likely not
By Maarten Swemmer
reach its CO2 reduction goals for 2030 based on current policies, according to the Planbureau voor de Leefomgeving (the Dutch Planning Office for the Living Environment). When consumers are as caring for the environment as research shows and actual response from governments and companies remains disappointing, it’s not surprising that this creates the circumstances for a teenager like Greta Thunberg to take a leadership role. The speed with which the movement has grown, which supports and advocates what she fights for, is impressive and indicative of wide spread consumer concerns.
In the end however, it’s not governments or Greta Thunbergs we need. We need consumers (and entrepreneurs) that lead by example. As a consumer, you yourself can do a lot by choices you make to achieve what you care about: buy products with less packaging instead of grabbing the more attractive, but also more polluting product; reject individually packaged candy; compensate flights with tree planting, or even better, conduct Skype calls instead of business visits where possible; eat local fruits instead of fruits that have to be flown in; buy multiple use, high quality products instead of single use or flimsy stuff; buy in a physical shop instead of online (saving both on shipping and multi-layer packaging); reject drinking straws. And explain your choices to kids, so they can do the same. In the end, we need leaders like you! Sources: https://www.nielsen.com/eu/en/insights/article/2018/global-consumers-seek-companies-that-care-about-environmental-issues/https://www.theguardian.com/sustainable-business/unilever-ambition-plans-sustainabilityhttps://nos.nl/artikel/2283495-ook-bananen-en-paprika-s-plasticloos-in-de-schappen-bij-albert-heijn.htmlhttps://nos.nl/artikel/2308564-co2-uitstoot-komende-jaren-flink-omlaag-maar-niet-genoeg-om-doelen-te-halen.html
Future proof leaders
You care about environmental issues (or at least the average consumer does)? Nearly every big company includes a chapter on the environment in their corporate social responsibility (CSR) strategy. Consumers expect companies to do the same. In the Asia-Pacific region, 83% of consumers (80% world-wide) indicate that it is ‘extremely’ or ‘very important’ that companies implement programmes to improve the environment.
S
Maarten Swemmer
Greenwashing is the practice in which marketing spending is used to make products or a company’s brand look greener than they are, for example, by telling only part of the story.
The Netherlands will most likely not reach its CO2 reduction goals for 2030 based on
current policies, according to the Planbureau voor de Leefomgeving (the Dutch Planning
Office for the Living Environment).
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News & Views
iechtenstein as a state was formed after an Imperial Diploma was decreed by the Holy Roman Emperor Karl VI on 23 January 1719, which merged the County of Vaduz and the Dominion of Schellenberg. This year,
the principality is celebrating its 300th anniversary. In that time, the country has been ruled by the Princely Family, who have led Liechtenstein through numerous economic and political events and forged it into one of the most prosperous countries in the world.
Financially independent, the family prides itself on its entrepreneurship, with business interests in agriculture and forestry companies, industrial holdings and an extensive real estate portfolio comprising historic castles and palaces.
As investors, the Princely House has led the way globally in pursuing a broadly diversified investment strategy based on thinking and acting for the long term. Its businesses also adopt rigorous sustainable development and ethical standards that set the benchmark high globally.
Over the course of its 300-year history, the country has transformed into a leading player on the global economic stage, standing out as one of only five debt-free states around the globe today. Moreover, ratings agency S&P Global reaffirmed Liechtenstein’s top AAA rating with a stable outlook, making it one of just 10 countries in the world to receive this rating.
Its excellent corporate environment and attractive growth prospects make Liechtenstein a great place to do business. It is home to more than 4,000 companies, including many global players highly successful in their respective niche markets.
By Erik Kampman, Managing Director LGT
Today, Liechtenstein is a highly industrialized country. Around 40% of the workforce is employed in the industrial sector, which together with the manufacturing sector generates almost 40% of the country’s gross value added. The country is home to a number of premium and niche high-tech companies offering innovative products, such as ceramic dental fillings made by Ivoclar Vivadent and Hilti’s cutting-edge construction technology.
The country’s focus on exports has made it an innovation hub, offering the perfect environment for creative ideas and entrepreneurial spirit.
The cornerstone of this financial prowess is LGT Bank. Since its establishment in 1930, LGT Bank has grown from being a small regional bank into the largest world-leading international private banking institution with over 3,400 employees and 20 locations worldwide.
LGT has extensive experience managing wealth across 30 generations. Traditional values and bespoke, innovative solutions are the foundations of its success. The bank takes a long-term view to both its business strategy and approach to investments.
LGT is one of the few international privately-owned banks that allows its creditworthiness to be evaluated by independent rating agencies, and has consistently been awarded very high ratings, including an Aa2 from Moody’s and A+ from Standard & Poor’s. It remains an independent family business owned by the Liechtenstein Princely Family, whose values ensure its integrity and reliability.
Liechtenstein leading the world on its 300th anniversaryLiechtenstein may occupy an area of only 160 sq km with a population of 38,000 people, but this small principality is in fact one of the richest and most economically dynamic nations in the world. Nestled between Switzerland and Austria, it enjoys an impressive GDP per capita that more than doubles that of the United States and is home to many highly successful global businesses.
L
Erik Kampman
(L-R) H.S.H Prince Philipp von und zu Liechtenstein, Chairman LGT and H.S.H. Prince Max von und zu Liechtenstein, CEO LGT.
Vaduz Castle, Principality of Liechtenstein
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News & Views
ndoubtedly considering itself a thought leader, integrated communications firm Edelman released its thought leadership impact study earlier this year (https://www.edelman.com/research/2019-b2b-thought-leadership-
impact-study). It’s conclusion? “Done right, thought leadership has tangible business impact. Done poorly, it creates risk.” While the study focused on the US, it does provide some interesting insights.
More than half of decision makers use thought leadership as a vetting mechanism. And even when already working with an organisation, thought leadership may lead to a continued relationship when it may not have been considered previously. The study as such highlights a clear opportunity gap whereby producers and sellers undervalue sales related to thought leadership.
By Annemarelle van Schayik, Telum Media
So if it’s such a no-brainer, why isn’t everyone doing it? While thought leadership increases trust and reputation, it can also easily turn stakeholders away from a brand. Furthermore, thought leadership has become so all-encompassing that some have called it “meaningless management speak”.
Authenticity is key. Stakeholders have a way of finding out when a brand or person is not being “real”. Something western companies have had to learn the hard way in mainland China. With the Chinese consumers having more spending power and its huge market, western fashion labels have been eyeing the market for years. However, a once carefully branded image can shatter within seconds by something as simple as to seen as viewing Hong Kong, Taiwan or Macau as countries on websites, in interviews or even on apparel. It’s been all too clear in more recent months when a simple tweet led to the temporary pull-out of any NBA games on Chinese television.
And this is where things get tricky. Are individual’s extensions of a brand or company? In mainland China and currently Hong Kong that certainly seems to be the case. But think about the west as well. What is Tesla without Elon Musk? Apple may have managed without Steve Jobs, but few have forgotten.
Perhaps the best case is the US where President Trump with a 280-character message shoots his latest insights into cyberspace, with any of them potentially unleashing total destruction. That’s a lot of power we, stakeholders, have bestowed on the most “accomplished” thought leaders. Not all thought leadership will be quite so powerful (or destructive). But building a brand around a person can be tricky.
So how to do it right? The Edelman study suggests focusing on six key points when it comes to thought leadership: capitalise on white space, be relevant, set a vision, build trust, be concise and measure progress. How you as your own brand or your company fill in those six pillars depends entirely on how you define yourself as a brand, complete with values and morals.
Thought leadership worth the risk?Thought leadership as a concept has been around for years. Yet, in recent years it has become wildly popular with founders and C-level execs who are exploring this venue to market themselves and their companies. Propelled by the internet, industry influencers have popped up. It’s become so popular because frankly it drives business from a company perspective, but for C-suite leaders career advancement is probably not far from their minds either.
U
Annemarelle van Schayik
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News & Views
1. What impact do I have?One definition of impact is the influence you have on others and on life, your legacy. Most of us are not aware of the impact we have. Tim Elmore says: “Sociologists tell us the most introverted of people will influence 10,000 others in an average lifetime.” When there is more awareness, we can choose to have a positive impact on others or not, and accept that each action will cause a ripple effect. Taking responsibility for actions often defines the success of a leader.
2.AmIhelpingothersdobetterorholdingthemback?As a leader, your primary role is to help other people be successful. Their success is your success. Therefore, you want to decide when to lead from the front, when to sit on the side-lines and when to lead from behind. Nelson Mandela put it this way: “It is better to lead from behind and to put others in front, especially when you celebrate victory when nice things occur. You take the front line when there is danger. Then people will appreciate your leadership.”
3. What did I learn about myself today?Self-knowledge and self-awareness are considered critical traits for successful leaders. But how can you learn about yourself ?
One option is to ask for genuine feedback from the people with whom you work closely in the organisation. Create a safe environment, perhaps outside of the office, where people can be honest with you.
Another way to learn about yourself is to pay attention to your emotions – both positive and negative. When your buttons are pushed, step back and analyse what it was that caused your response.
4. How do I inspire my organisation?This is not an easy question to answer and often external communication specialists are hired to make sure the company’s vision, strategy and values are communicated well through all levels of the organisation.
Ultimately, it is the task of the leader to bring the message across in a compelling way. Employees who are inspired by the company’s
By Liesbeth van der Linden, Leadership Coach and Founder of GLTD Ltd Hong Kong, www.gltd.co
vision, have confidence in their leader and are clear about their role, will care more about working for the organisation and experience greater job satisfaction while contributing to the overall company goals.
5. If someone replaced me right now, what would they dodifferently?Often you will hear leaders say: “If I only knew then what I know now!” indicating the value of their experiences and all of what they have learned from their mistakes and achievements. But instead of looking at what they already know, a great exercise for
leaders would be to take a look at what other people would do if they were to step in their shoes right now. This change of perspective can lead to new insights.
6. What is the level of trust in my team?This question might come up for leaders when they are triggered by incidents that indicate that there could be ‘lack of trust’ or ‘fear’ in the team; when one or more persons are afraid to speak out, are not willing to take any risk, are looking for personal gains, if there is no commitment to the larger interest of the company, etc.
Randy Conley says that: “Trust is the magic ingredients of organisations; It is simultaneously the glue that holds everything together, while also being the lube that allows all the parts to work together smoothly.”
7.Whatisholdingmeback?How often do we hold back instead of going after something that we really really, really want? Leaders are quite visible and might
therefore feel vulnerable as well. It is worthwhile looking at what ‘holding back’ is really costing you. What stories are you telling about yourself that are holding you back? What beliefs do you hold that are limiting you from taking action?
While these questions may not be easy to answer, a professional coach may be able to help; someone who is non-judgmental, who is not afraid to give honest feedback and who can help leaders see things from a different perspective, like Wayne Dyer said: “Once you change the way you look at things, the things you look at change.”
7 Questions Successful Leaders Ask ThemselvesResearch has shown that successful leaders have the ability to reflect on their own behaviour and continuously work towards personal development. So, what are some of important questions they ask themselves? Liesbeth van
der Linden
13
Go Green
simple definition is that leadership is the art of motivating a group of people to act towards achieving a common goal. The leader in a group is the person in that group who possesses the combination of personality
and leadership skills that makes others want to follow his or her direction.
In our world today we face many challenges. Of course, we encounter all kinds of opinions about how to deal with immense problems such as, “How to achieve a green world?” But equally important is for people to be able to listen, to understand the other, to find common ground and to learn to compromise.
Sometimes a leader may find that he/she needs to break away from the eternal consensus cycle and try to convince others that there is a ‘third’ road. A road that has previously not been explored. That road may not an easy one to take, but sometimes, it is the right one.
Leadership starts with honesty, integrity, understanding, listening, trying to find the way forward, to tirelessly work to convince others that there are other solutions and win the hearts and minds of people to embark on a different path.
So, what do we see in our world today? You decide. It is clear that if we want a clean environment, a clean world, no plastics in the oceans, no polluted rivers, no contaminated soil and even no throwing of waste into bushes, then we need leaders to step up to face these challenges, and they are needed now!
But hey, in all honesty, does finger pointing alone help? Have we looked at ourselves? If we elect ‘leaders who fail’, who is to blame? It becomes more complex when people don’t have any say about who leads them. Here’s a famous statement about leadership in companies, also known as less democratic (Peter Drucker):“Management is to do things good; Leadership is doing the good things.”
It requires thinking, reflecting on how to find out what the good things are. However, from my Green World perspective, it is not so difficult to agree that we all want a healthy environment to live in, right? Let’s see what Lao-Tse, philosopher from China 600 BC said:
“If you leave cloudy water alone, it becomes clear on its own.”
The strong of nature and its ability to heal on its own. However, in the last couple of hundred years, from the Industrial Revolution
By Bernard Scheffens, CEO, WSS Asia Ltd., [email protected]
until today, humans managed to overtake nature and are quite busy with destroying Mother Earth’s wealth and beauty. That’s why we need to re-think, re-invent, to find new approaches about how we can safeguard our welfare, be able to feed all humans, avoid military and costly conflicts and establish a new world order etc. Well, you know the story and that it all starts with ourselves.
I have great trust that, eventually, we will overcome the difficulties someday, because I don’t like any of the other options.
LeadershipYes, we are all aware of definitions of leadership or joking about it. It’s not the title you have. It’s not a bullying style. It’s certainly not about making everybody happy. So, what is it?
ABernard Scheffens
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“Management is to do things good; Leadership is doing the good things.”
Peter Drucker.
14
Lead Story
Douglas So, Founder & Director, F11 Foto MuseumWhen Douglas So picked up a copy of Ed van der Elsken’s book of photographs titled Hong Kong, he was mesmerised. The Dutch photographer spent three weeks in Hong Kong between 1959 -1960 as part of his 13-month around-the-world trip, capturing the cityscapes and sometimes gritty images of life as it was back then.
Douglas So is the Founder and Director of F11 where the collection of van der Elsken’s 130 Hong Kong photos are on exhibit until 28 February 2020. Titled HONG KONG the way it was this is the first time the collection of photos has been shown and coincides with F11 Foto Museum’s fifth anniversary.
“When looking at Ed’s photos, we can see that even back in 1959-60, Hong Kong people were from everywhere,” said Douglas.
By Donna Mah
“About half of the population at the time had come from China, many as refugees. I think that back then, the identity issue was as acute and sensitive as it is today.”
The exhibition is a glimpse into Hong Kong’s past and reminds us of how much has changed, or perhaps how much remains the same. The concept and the creation of this unique space is due to the leadership and efforts of Douglas and his team.
Creating F11 Foto Museum – Vision and Missions“In establishing F11 Foto Museum, I wanted to promote photography culture. I wanted to bring the history of photography and build awareness of the different schools of photography and styles to the general public. The preservation and conservation of Hong Kong’s own history is also important to me, which is one of the reasons why I’ve chosen to create F11 in a grade 3 historical building. For me, beauty is best exemplified in the area of art,” said Douglas.
Art and leadership From the world of photography, Douglas So, Founder of F11 Foto Museum (Ed van der Elsken’s Hong Kong collection is currently on exhibit), and Marcel Heijnen a Dutch photographer best known for his photos of shop cats shared their leadership experiences and what makes a good leader.
Marcel HeijnenDouglas So
Douglas and Annemieke Ruigrok, Consul General of the Netherlands, at the opening of the Hong Kong the way it was exhibition
15
Lead Story
F11 Foto Museum is housed in Happy Valley in a fully-restored three-storey Art Deco building from the 1930s and promotes photography through well-curated exhibitions of rare cameras, books and photos. The current exhibition of van der Elsken’s photos were developed and printed by the photographer himself in 1989 when he spent five weeks working on the collection. He had prostate cancer and passed away the following year on 28 December 1990.
Douglas shared his reasons for creating the space and explained that his vision was, firstly, to promote the photography culture in Hong Kong. Not just the love of photography, but also knowledge about photography – history, different schools and styles and also the appreciation of photography as artwork. The second thing is promoting heritage conservation. He’d like to encourage owners of heritage buildings to give the buildings a new life through conservation and revitalisation. Thirdly, he promotes the establishment of more private museums in Hong Kong as he’s seen that in a number of major international cities, there are many privately-owned museums which focus on and go deeper into one particular subject. “For example, in Amsterdam, you have the cheese museum, the canal museum and even a torture museum. Hong Kong, as a major international city, is still lagging a bit behind in this regard,” he added.
The mission of the museum focuses on five areas:
1. Organising high-quality exhibitions for the public to enjoy
2. The collection – Douglas said that is important to build up a collection systematically and strategically. “We cannot collect everything. We are very proud to have this Ed van der Elsken collection of original vintage prints developed by the photographer himself (a year before his passing) as part of our collection. We have also built up an impressive collection of cameras and photo books,” he said.
3. Education – Both about photography and heritage. Workshops are being organised including the first one in relation to the current exhibit titled, “Identity of Hong Kong”. It is the first in a series of five that are planned. Experts will be invited to speak about heritage and old Hong Kong.
4. Research – With each exhibition something new is discovered and shared with the world.
5. Publishing – F11 started publishing about two years ago though at present there is no book for the current exhibition.
Why photography?When Douglas visits cities such as London, Tokyo or New York, he was always impressed by the number and variety of photography events on offer. Being able to enjoy photography in these cities where exhibitions and talks are run all year long, he was inspired to bring this to Hong Kong through F11 Foto Museum. Douglas’ interest in photography led to his interest in meeting many photographers and a curiosity about what cameras they used, which led him to the Leica brand. At F11, visitors will find large Leica camera models as well as vintage Leica cameras and memorabilia on display offering a rare glimpse into the brand’s developments and innovations.
About leadership“You will make mistakes. Everyone makes mistakes. Experience has taught me that there is nothing to be afraid of. As you delve deeper into your subject or work, people will teach you and you will learn,” said Douglas.
Douglas has held a number of leadership roles throughout his career. He was a practicing lawyer for 25 years, first with Baker & McKenzie and then with the Hong Kong Jockey Club (HKJC) as general counsel. He mentioned that in every position he has held, he has learned something from the leaders at work and through his philanthropic activities. For Douglas, good leaders not only know how to lead, but they think about how to contribute to society as well.
“It’s important to formulate your own values and vision so that they can be clearly communicated to the people you work with,” he said. “At some point, you ask yourself, ‘What are the things that are most important to you?’ And one of these things, for me, is people,” he elaborated when asked about giving back to society.
At the HKJC when Douglas was appointed Executive Director of Charities, it became a turning point for him. It was a period of five years when he could devote most of his time to working on non-legal
Douglas being interviewed at F11
Photo by Ed van der Elsken from the “Hong Kong the way it was” exhibition
16
Lead Story
matters in many different areas including culture and heritage. He was also asked by his alma mater, the University of Hong Kong, to help them with institutional development covering fund-raising, alumni development and public relations. Through his charity work he has met a number of community leaders from different sectors – arts and culture, healthcare, education, environment, etc. He feels he has been very fortunate to have had the opportunities to work with the very best people from so many different sectors. From them he gained many ideas as well as observing how they conducted themselves and how they contributed to society. These people were not only leaders in their chosen fields, but were also making contributions for the betterment of society.
In developing vision and mission statements, Douglas looks at them as an expression of what the dreams are for that organisation. In pursuing theses dreams, Douglas knows all too well that hard work is inherent in this and said, “Leaders need to have dreams. They need to work their butts off to make the dreams come true.”
He also stressed that vision and mission statements are constantly revisited and revised as necessary. Which often leads him to question whether or not he is on the right track. “Whenever you embark on something innovative, you will always have doubts and struggles. You’ll question yourself. It is creating that gives me the greatest satisfaction,” he said. “Creating this space (F11), this exhibition and putting together the books has given me more satisfaction than just owning things, even more than my Leica collection.”
Douglas maintains a busy schedule and splits his time among his many projects including F11, F22 in Wan Chai, as an investor in the Leica flagship store in Causeway Bay, a sister gallery in Paris and a new camera shop and gallery concept in the Peninsula hotel which is set to open in early 2020.
Marcel Heijnen, Photographer, Licht LimitedMarcel Heijnen moved to Asia in 1992 when he worked as Art Director for Philips based in Singapore. When it comes to leadership, Marcel said that his many of his role models would be from this part of the world rather than his native Netherlands. He does credit his first boss, Murray Camens, at Philips in the Netherlands with believing in him and encouraging him as a young employee at Phillips to reach his potential. The head of the
design studio in Singapore, Jonathan Bonsey, is someone else he found to be an excellent leader, giving him projects that allowed him to work on different brands and products. With the leaders who have influenced Marcel, he notes that there was also mutual respect.
What is leadership?For Marcel, leadership was something he relates with Asia. He moved here as a 27-year-old and he said that any leadership skills he has were developed here. “In Asia, I’ve learned not to be as direct or blunt which is what the Dutch are known for,” he added. “Leaders should give the people they lead the feeling that they are capable of doing what they do and also guide them to achieve more. It’s a fine balance.”
He compared a good leader at work to a good coach leading a sports team. “They are usually older and more experienced,” he said. A team or any organisation needs someone to make decisions otherwise things don’t move forward. Good leaders are also accountable for their decisions, as they empower and inspire the people they lead.
While working at Philips, Marcel gained management experience managing small teams of people. He said that he enjoyed the experience that provided good learning opportunities as well as making him grow as a person. As a leader, he again spoke about mutual respect as well as being able to inspire and drive his teams to create.
Creating and the challenges facedWhile Marcel spoke about his career path of having gone from leading teams of people to working independently – managing the design team at Philips and then to design, photography and publishing ‘as himself ’.
He co-founded a collective of like-minded individuals with different talents and skills to contribute called Chemistry (www.chemistryteam.com). The collective operates like an agency, or strategic consultancy, with a team of innovators, business experts and design consultants working with clients. Marcel explained that each member of the team carried business cards with ‘as himself ’ or ‘as herself ’ as the title rather than ‘director’ or other such title.
As co-founder of Chemistry, which was established in 2000, Marcel explained that he didn’t think that the creation of the collective
Photo by Ed van der Elsken from the “Hong Kong the way it was” exhibition
Marcel with Dutch singer Frans Bauer and Bauer’s wife, Mariska
Lead Story
17
Lead Story
necessarily showed leadership. “The idea for Chemistry came from me. The beauty of the collective format is that members of the collective can work hard for a few months and then take a break to work on other things,” he said. Marcel himself worked at Chemistry for 10 years and then took a break for 1.5 years to do other things. During his break, his clients were handed over to his partners. The concept shows creative and innovative thinking as well as accountability to other members of the cooperative and commitment to getting projects done, which would all be considered leadership skills.
While Marcel thinks that while partnerships are good, they can also be hard. “They should be done, but different people will have different work ethics,” he explained. “In the Chemistry model, people have the freedom to work for themselves and also ask others in the group for advice or for a brainstorming session.”
He also co-founded a gallery café called Artistry which ran for five years and became a hub for indie music and poetry performances, art exhibitions and known for great coffee and food.
“Growing up in the Netherlands, there is security in working for corporations. Since I’ve lived in Asia for many years, I have been inspired to start my own business,” he explained. “From a leadership perspective, I am going from leading a team of people to leading myself and collaborating with a few people.”
Marcel has also created his own publishing company called Licht Ltd which publishes collections of photos that he takes. His most well-known and popular work is his book titled, ‘Hong Kong Shop Cats’. With over 34,000 followers on Instagram (@chinesewhiskers), Marcel’s popularity as the ‘shop cat photographer’ is one that has expanded his reach and helped establish his name.
“I’ve also done a dog book, but hardly anyone knows about that one. Photographs of dogs often show them on the ground whereas cats can be found all over the place. There is an elegance to cats. Plus dog people usually only like certain breeds of dogs. People who like cats usually like all cats. Cats have more general appeal to people,” he said.
Marcel is currently working on another shop cat book for the Mainland China market. While working on the book, he learned that cats in shops was a much more common occurrence in southern China than in the north, most likely due to the warmer climate and therefore more vermin. The book is expected to be published next year.
Mentorship rather than leadershipMarcel said that people he has worked with may consider him a leader, however he now prefers being in a mentorship role. He has mentored young designers which he finds fulfilling and worthwhile – being able to share his knowledge and experience.
He shared a story about an architect he met in a gallery who wanted to know how to create and publish a photo book. This person met with Marcel a number of times and showed him his layout drafts. Marcel was able to go through the layouts with him to identify what things worked and what things didn’t. Marcel learned how to offer feedback and his mentee was able to learn from Marcel’s years of experience. It is this type of ‘leadership’ work that Marcel finds the most rewarding.
Marcel filming with Dutch singer Frans Bauer and Bauer’s wife, Mariska
Marcel with a Hong Kong shop cat
18
China Focus
eing a boss and being a leader are two entirely different things, as conventional wisdom has it, and some may even argue the two are mutually exclusive. The usual follow on runs along the lines that leaders should
inspire, put the interests of their charges very high on their list of priorities (preferably ahead of their own) and generally create an environment which makes those they lead feel valued and appreciated.
Sounds persuasive, right? Those Virgin posts flashing by on LinkedIn regularly remind me with what I will call their “millennial mantra”, something along the lines of training staff well enough so they can leave anytime they choose and paying them well enough so they won’t want to.
Let me stress that I have a lot of respect for what the Virgin Group has achieved, and I will freely admit having partaken of some of the more exotic perks its staff enjoys – the Roof Gardens club in London’s Knightsbridge being a case in point. Moreover, Sir Richard’s well-known stunts are in a class of their own amongst the ways business leaders seek to inspire.
Yet it would occur to me that the arguments for inspirational leadership tend to be advocated principally by people who are not in a position of authority. Or those that are but have a vested interested in publicly advancing those arguments. Consultants, academics, column writers in this magazine perhaps? – in short, all except those with a responsibility for the cold hard bottom line.
By Ralph Ybema, [email protected]
My firm belief is that nothing in life is to be taken for granted – save of course for those two classics, death and taxes. The focus on inspirational leadership in for-profit companies carries a danger of the core rationale for such companies being ignored. A world-class leader who fails to bring in the dough will, in due course, not have many employees left to lead.
I have no issue with strong leaders in companies, far from it. However, an employment contract is in essence a business deal and no employer is perfect. So, no employees should fool themselves into thinking that getting fired by a boss who is not a natural leader is somehow that boss’s fault.
Of course, there are plenty of examples of organisations with a much lower need for bottom line focus. Take your average post office, lawn bowls club and soup kitchen and I believe inspirational leadership is absolutely crucial. How else to motivate staff to perform?
Oddly enough, at the other end of the scale where much more is at stake than mere money, inspirational leadership is equally crucial. Ever wondered how a military officer in a combat zone makes sure his men advance against the enemy at immediate risk to their life, instead of shooting him? Quick clue: – the correct answer is not the risk of a court martial …
And, as our Chief Executive Carrie Lam has been finding out to her undoubted grief over the past months, the business of government is somewhat illusive in this context. It may look like a post office counter job when all is quiet, and the economy is humming along nicely. Enter the real estate lobby creating an entire generation of disenfranchised youngsters and all of a sudden, you need to be more than just a well-intended employer. Then add in a few political hot potatoes and here we are in the middle of a combat zone, where natural leadership is required – or else.
As far as the Hong Kong top job goes, ever since the handover in 1997, businessmen and career civil servants alike have shown to be well out of their depth. That makes it sound like there is a case for the next Chief Executive to be either a kindergarten teacher or an army general. Given the way Chinese toddlers get treated, I am not so sure which I would prefer.
“The best argument against democracy is a five-minute conversation with the average voter.” – Winston ChurchillResearch has shown that successful leaders have the ability to reflect on their own behaviour, are self-aware and continuously work towards personal development. So, what is going on inside their minds? What are the most important questions they ask themselves?
B
Ralph Ybema
The focus on inspirational leadership in for-profit companies carries a danger of the core rationale for such companies being ignored. A world-class leader who fails to bring in the dough will, in due course, not have many employees left to lead.
19
Introduction
In the past, most working arrangements abroad were rather permanent, nowadays jobs are also performed on an assignment/secondment basis or on a commuter basis or even as a combination of these latter two arrangements. These various working arrangements not only impacts and complicates the individual tax treatment of these employees/directors, but also has an impact on the corporate tax liabilities of the companies themselves, especially when these individuals operate at a managerial and/or executive level.
Individual Income Tax Issues
For example, an individual that is based in Hong Kong might perform duties for its Hong Kong’s subsidiary in Mainland China. The individual sometimes stays the whole week in Mainland China, some other weeks he might go back and forth, and other weeks he only stays for three days. Issues that emerge in these situations are related to whether or not the individual will become a resident for Mainland China tax purposes, resulting into the reporting of worldwide-income taxes in Mainland China, and if not, whether the working arrangements causes double taxation on the individual’s income. The latter is often the case when foreign companies allow their Mainland China subsidiaries to withhold income tax on payments made to individuals that commute to Mainland China on a weekly basis.
Other individuals, for example, might be of Australian nationality, are employed through a US Delaware company, are newly based in Hong Kong and provide services not only in Hong Kong, but also in Australia and in the US. Typically, these individuals want to benefit from exemption rules in Hong Kong, and at the same time not pay any taxes in the countries where they provide services. It is recommended for globally mobile individuals to closely monitor the number of days they spent in the various tax jurisdictions and record their travel schedules showing the date of arrival and departure from each jurisdiction and the purpose of their stay.
By Willem Jan Hoogland [email protected] and David Lo [email protected], HKWJ Tax Law & Partners Limited, www.hkwj-taxlaw.hk
Corporate Income Tax Issues
Most domestic tax rules of jurisdictions and also most double taxation treaties state that the place of central management and control of a corporation is a relevant factor when determining the corporate income tax exposures of such corporation in a tax jurisdiction. For example, in case a director of a Hong Kong entity is based in the Netherlands and manages and controls the Hong Kong entity from out of the Netherlands, there is a large risk that the Hong Kong entity would be considered by the Dutch tax authorities as a Dutch tax resident for Dutch corporate income tax purposes and accordingly, its worldwide profits shall be subject to the Dutch corporate income tax under the local tax rules of the Netherlands. In addition, the Hong Kong tax authorities might want to enforce its Hong Kong profits tax rights on the Hong Kong entity, resulting into double taxation.
Moreover, a Hong Kong entity might for example have personnel based in Mainland China, allowing them to conclude sale and purchase transactions with their customers and suppliers. As a result, subject to conditions, these business functions may potentially result into so-called permanent establishment (“PE”). Such PE would be liable to corporate income tax in Mainland China and this shows that employees in such a Hong Kong entity can create unintended corporate income tax exposures for their Hong Kong employer in Mainland China.
In order to mitigate PE related corporate income tax exposures in a foreign tax jurisdiction, the directorship structure of a company as well as the roles and duties of personnel working for such company overseas must be well organised and executed.
Conclusion
When considering sending personnel abroad, do also take into consideration that such assignments may result into unintended foreign corporate and individual income tax exposures for the home-based corporation and the assigned employee respectively.
Global Mobility Issues from a Corporate & Income Tax Perspective Global mobility has allowed more and more companies to request their personnel to carry out work duties outside the companies’ home tax jurisdiction. David Lo
Willem Jan Hoogland
Tax Focus
It is recommended for globally mobile individuals to closely monitor the number of days they spent in the various tax jurisdictions and record their travel schedules showing the date of arrival and departure from each jurisdiction and the purpose of their stay.
In order to mitigate PE related corporate income tax exposures in a
foreign tax jurisdiction, the directorship structure of a company as well as the roles and duties of personnel working
for such company overseas must be well organised and executed.
20
Passport to Hong Kong
20
n 1960, the Cultural Revolution in China, which also had its impact in Macau and Hong Kong, began. Hong Kong was a very different place in the 1960’s than it is today. Social disparity was much more serious, with
thousands and thousands of refugees from China living in squatter camps, shantytowns with no running water or toilets. There was even then, a strong lack of social mobility.
The potential social unrest had already been briefly visible in 1966 when there was a massive uprising against the Star Ferry cross harbour fare increases; remember that there were not any cross-harbour tunnels at that time, so there was no alternative connection between Hong Kong Island and Kowloon. The so called “Star Ferry riots” resulted in more than 900 people being arrested, including many teenage boys.
By Daniël de Blocq van Scheltinga, Managing Director, Polarwide Limited
In May 1967 a strike broke out at the Artificial Flower Works in San Po Kong, Kowloon, which was a factory owned by a now well-known entrepreneur named Li Ka-shing. This labour dispute arose following wage cuts, a ban on taking leave and the dismissal of 29 workers who had dared to complain. This was the catalyst that started the months of unrest, which we today know was secretly planned and organised by the Hong Kong and Macau Work Committee, the local branch of the Mainland Chinese Communist party. Local Hong Kong communist cells started the violent campaign in Hong Kong partly to show their loyalty to Mao Zedong, but also to avoid becoming targets themselves in a possible future communist purge.
The demonstrations and strikes quickly morphed into a broader movement against the colonial government and colonialism itself with growing public support. There was a large group of
A very dangerous yearHong Kong has gone through several turbulent periods in its history, the most violent being the riots of 1967. At the end of eight tumultuous months, more than 800 people had been injured, 51 people had been killed including ten police officers, more than 1,800 bombs had been detonated either by the Army bomb disposal experts or by deadly explosion, and thousands of fake bombs, spreading fear, had been placed.
I
Daniël de Blocq van Scheltinga
Rioters burn bamboo baskets in 1967.
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sympathisers who were deeply influence by Mao’s Cultural revolution, most notably in North Point, which became a communist enclave. Some left-wing schools were even mobilised and got involved in bomb making. In secondary school science lessons, the students were instructed to make bombs in the school labs! This was not without danger, and in November 1967 a student at Chung Hwa Middle School in Peel Street, Central lost his left hand while making a bomb.
Soon a curfew was imposed on parts of Kowloon, with the police using teargas quite often to end demonstrations, and the whole atmosphere became very tense, especially as parcel bombs were planted all over the city. Wealthier families started to sell their properties at greatly discounted prices and send their children to study in the UK or the US.
In July 1967, one of the most violent clashes occurred near the border with China. Five police officers were killed in the border village of Sha Tau Kok, when 300 armed Chinese militia crossed the border to support local demonstrators and trapped 86 policemen in the local rural committee building and police outpost. The shooting and stand-off lasted for over ten hours, until five hundred British Army Ghurkha’s, the elite soldiers of the Royal British Army, were sent in to relieve the siege.
Public sympathy began to turn after two atrocious incidents occurred in the same week in August. On August 20, an eight-year-old girl Wong Yee-man and her two-year-old brother Wong Siu-fan, were playing near their North Point home when they found a parcel bomb on the street. Thinking the box looked interesting, the picked it up and started carrying it home when the bomb went off, killing both.
Four days later, a popular Commercial Radio host named Lam Bun, known for his criticism of the protest movement, was attacked. While driving to work with his cousin, the car was stopped by two hitmen pretending to be road-repair workers. As the car was stopped and waiting for the signal light to change, the “workers” tossed a Molotov cocktail through the car window. As Lam Bun and his cousin staggered out of the car, the assassins poured petrol on them and set them alight. They both died of their severe injuries a few days later. According to the press these killings “stuck fear into the hearts of the Hong Kong people”, and turned them against the leftist movement.
The British then eventually defused the crisis, utilising the change in public sentiment, by promising substantial political reforms. One of the important issues that had come to light was the distance between the colonial government and the ordinary people of Hong Kong. This realisation led to the establishment of what we know today as district councillors and district council offices. In 1971 the new governor, Murray MacLehose, arrived. He held the positions of governor until 1982. He implemented many positive changes in the territory, including the establishment of free education and public housing, that the 1967 sentiments had no breeding ground whatsoever.
The 1967 riots had another impact on so many local people who had fled from China or elsewhere: they realised that Hong Kong was their home, and that they had to make the best of the opportunities, and that it was up to them. The so-called “Lion Rock Spirit”, as expressed in a theme song from a popular television series of that time: Fearless and valiant inside, Rough terrain no respite. Side by side we overcome ills, As the Hong Kong story we write.
It is no coincidence that the subsequent two decades were the most prosperous that Hong Kong has ever experienced.
A man is questioned by police in San Po Kong on May 12, 1967.
Onlookers gather on Johnston Road, Wan Chai, as a bomb disposal expert examines a suspected bomb, in 1967.
22
Passing the Pen
Passing the PenName: Robbert PauliOrganisation: Randstad Hong Kong Email: [email protected]
Who am II’m Robbert Pauli and I’ve recently joined Randstad to match tech talent with companies. I’ve been living in Hong Kong for almost three months now. I was born in Arnhem, Netherlands and studied and worked in Amsterdam for almost 10 years before moving to Singapore in June 2017. I love to travel, as I get to explore new things.
During the weekends, I like to go for hikes, play soccer, tennis, golf or hang out with friends and try all the food that Asia has to offer.
My professional background is I received my Bachelors in Hotel and Event Management in Amsterdam. After several years working in the F&B and hospitality industry, I move into events and accounts management. I had the opportunity to work with several renowned brands and events/festivals. At Loveland Festival we did several brand activations with brands like Diageo (Smirnoff Vodka), Spa, Bjorn Borg, Jägermeister and Piper-Heidsieck.
Seven years ago, I decided I wanted to do something completely different and I started my career in recruitment. One year before I started in recruitment I turned down an offer down from the company I started my career with. I thought recruitment and IT is not in line from what I have been studying and where I gained all my experience in. One year later I went back and asked if they were still interested in hiring me. Since then I’ve been recruiting in the technology Industry.
I am currently managing a team of technology recruiters and I specialise in the recruitment of senior professional appointments and data and cybersecurity.
I work forRandstad, a leading global recruitment and human resources services provider with operations in key APAC cities across Australia, China, Hong Kong, India, Japan, Malaysia, New Zealand and Singapore.
In Hong Kong SAR, we specialise in both the recruitment of professionals in permanent and contract roles across key industries and expertise, which include: accounting & finance, banking & financial services, human resources, insurance, information technology, construction, property & engineering, supply chain & procurement, retail as well as sales & marketing.
I moved to Hong Kong SAR becauseDuring my time in Singapore I visited Hong Kong several times and I fell in love with the city and everything it has to offer outside of the city centre.
When I first moved to Singapore in June 2017, I was already considering Hong Kong as a place where I could see myself living. I had a great time in Singapore, where I built a great network of friends, business contacts and had a very active social life. Unfortunately, the recruitment company I set up with a few partners didn’t work out and I could not find an appropriate job opportunity. A friend living in Hong Kong suggested I look into the job market in Hong Kong and after speaking to a few companies, I packed my bags to join Randstad Hong Kong.
My most remarkable work story isI’ll never forget my first placement in recruitment. At that time, I specialised in the telecom market and all the companies in the Netherlands were rolling out their 4G network. I got in touch with a company that installs antennas on buildings, and they were having difficulty finding people to do the installations. So I did some research and found some candidates based in the UK.
After a few interviews, two candidates travelled by ferry to the Netherlands from Ireland for a six-month contract. However, the safety certifications for working on heights are completely different in the UK, so both candidates were not able to start work. They both needed to complete a safety course and exam first which would cost Euro 3,000, and the first available course was in two weeks. The entire process took almost a month and was incredibly stressful. I had to manage expectations for both the candidates and client. The experience taught me to always do research before engaging with anyone professionally.
I find most of my business contacts through I’m in a business where we are on the phone most of the time, speaking to clients and candidates and that starts with doing business development calls. But most of my business contacts come through networking, attending events, meet-ups and through referrals.
One day I will beWorking remotely from one the nice beaches Asia has to offer. I’m a firm believer of meeting all my clients and candidates face-to-face. But I hope I can build my network well enough over the coming years that I will be able to my work remotely utilising all the latest technologies.
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InterSME Finances for Growth
KPMG Hysan Place
24 September 2019
Events
KLM 100th Anniversary BlueBiz Cocktail
Olaa Bridge Street, Central
17 October 2019
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Events
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F11 Foto Museum - Private Tour Exhibition Ed van der Elsken “HONG KONG …THE WAY IT WAS”
F11 Foto Museum - 11 Yuk Sau Street, Happy Valley
20 November 2019
Finance Breakfast – The Rise of Responsible Investing
Consulate General of the Kingdom of the Netherlands
01 November 2019
2525
China Seminar 2019 - China’s New Norm: The Reality, Opportunities and Risks
Hong Kong Bankers Club – The Landmark, 12- 16 16 Des Voeux Central
21 November 2019
Finance Dinner
Royal Hong Kong Yacht Club
19 September 2019
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Member’s Corner
NEW MEMBERS LISTINGS
Jean-Pierre StaelensCEO, Goodmark Asia Ltd “Goodmark” is the name of a group of companies specialised in party and seasonal items with a very strong focus on party make-up for children, party poppers, LED balloons and many products packed in aerosols. The group is present in the US (Goodmark USA Ltd), Europe (Goodmark Europe nv) and Hong Kong (Goodmark Asia Ltd) and are all regrouped under the holding “Goodmark Group Ltd”, also based in Hong Kong. All companies are 100% family owned, namely by the family Volcke. BOTI Europe nv (Apeldoorn) and BOTI Global Ltd (Hong Kong), specialised in toys, belong to the family as well. I started working for the group in the mid-seventies. At the same time, as a top sports athlete those days (volleyball), I married to Ina who was also a top volleyball player. Both our daughters decided only to play for the Dutch National Team, we then decided to move to the Netherlands. I left Goodmark, worked for different companies internationally and finally returned in 2016 to Goodmark Europe nv. As from then, I travelled up and down between Europe and Hong Kong to finally come to live here last June. Today, I combine the Groups interests in Europe and Asia. Besides my job, I have a great interest in typology, behavioural economics, top sports in general and I am a huge fan of Ajax Amsterdam (football)! Jean-Pierre StaelensCEO, Goodmark Asia Ltd Unit 404A and 405, 4th floor, Tower 1, South Seas Centre, 75 Mody Road, TST East, Kowloon, Hong Kong+852 68887347
Han Shi ChenRegistered Foreign Lawyer at Slaughter and May (Secondment from De Brauw Blackstone Westbroek) I joined English law firm Slaughter and May’s Hong Kong office in September as a secondee from Amsterdam-headquartered leading law firm De Brauw Blackstone Westbroek. I am a lawyer specialising in corporate law with a particular focus on mergers and acquisitions. Since joining De Brauw I have mainly worked on transactions with a European and/or US angle. During my time with Slaughter and May, I am expanding my experience by working on M&A in a Chinese and, more broadly, Asian context. Like many of the people I met since my arrival in Hong Kong, I share a past with this enticing city – I studied at the University of Hong Kong in 2012/13 and have felt drawn to Hong Kong ever since. I am looking forward to connecting with other members of the Dutch Chamber and exchanging thoughts and experiences in this place I call my second home! Han Shi Chen, Registered Foreign Lawyer at Slaughter and May / Senior Associate at De Brauw Blackstone [email protected] / [email protected] Floor, Jardine House, One Connaught Place, Central, Hong Kong+852 2901 7252
Dorine TrompCommunity Manager at Garage Society
New to Hong Kong and excited to be a part of Garage Society which offers premium co-working space, a digital members’ portal, knowledge-sharing events, internship programme, recruitment & investment support and more. We’re home to international startups, creatives, and freelancers and digital nomads from around the world. Our mission is to facilitate collaboration and growth within our community and beyond.
Dorine Tromp, Community [email protected] House, 1F & 2F, 93-107 Lockhart Road, Wan Chai, Hong Kong
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Enquiries and Information
IN HONG KONG
Construction Innovation Expo 2019 Venue: HKCECDate: 17-20 December 2019Organiser: Construction Industry CouncilEmail: [email protected] Website: http://ciexpo.cic.hk
Hong Kong Homex Venue: HKCECDate: 25-28 December 2019Organiser: Hongkong-Asia Exhibition LtdEmail: [email protected] Website: http://home-expo.com.hk
Asian Licensing Conference Venue: HKCECDate: 6-7 January 2020Organiser: HKTDCEmail: [email protected] Website: www.hktdc.com
Lohas Expo Venue: HKCECDate: 21-23 February 2020Organiser: HKTDCEmail: [email protected] Website: www.lohasexpohk.com
Asia Pacific Rail 2020Venue: HKCECDate: 11-12 March 2020Organiser: Terrapinn Pte LtdEmail: [email protected]: https://www.terrapinn.com/ exhibition/asia-pacific-rail
IN THE NETHERLANDS
Horecava Venue: RAI AmsterdamDate: 13-16 January 2020 Organiser: RAI AmsterdamEmail: [email protected] Website: www.horecava.nl/
Kickstart Europe Venue: RAI AmsterdamDate: 27-28 January 2020Exposition: for C-level in data center, connectivity and cloud professionals Organiser: Digital Gateway to EuropeEmail: [email protected] Website: https://www.kickstartconf.eu
Huishoud beurs Venue: RAI AmsterdamDate: 22 February to 1 March 2020Organiser: RAI AmsterdamEmail: [email protected] Website: https://www.huishoudbeurs.nl/
HISWA Amsterdam Boat Show Venue: RAI AmsterdamDate: 11-15 March 2020Organiser: HISWAEmail: [email protected] Website: http://www.hiswarai.nl/
Building Holland Venue: RAI AmsterdamDate: 24-26 March 2020Organiser: Easyfairs Netherlands BV Email: [email protected] Website: https://www.buildingholland.nl
TRADE SHOW CALENDAR
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With a longstanding presence in Asia Pacifi c and a strong global network, ABN AMRO is your trusted partner in a ever-changing world. Our expertise spans across Clearing, Coverage, Structured Finance and Corporate Finance, but we also have our network of International Desks. There we service our Dutch clients that are looking to expand their business in Asia Pacifi c. For more information, visit abnamro.com
Connecting the world with you
DUTCHCHAM COMMITTEES
DUTCHCHAM GOLD MEMBERS
MEMBERSHIP & ANNUAL FEES
We are an independent, member-driven, non-governmental, non-profit business association which serves to facilitate business in Hong Kong and Greater China for its members by providing networking, knowledge sharing and company profiling opportunities.
As the representative body of Dutch business in Hong Kong, we maintain close relationships with both the Dutch and the Hong Kong SAR governments.
● Gold Member● Corporate Member● SME Member● Associate Member● Young Professional● Start-up Member● Overseas Member
HK$ 20,000HK$ 8,500HK$ 3,500HK$ 3,500HK$ 750HK$ 1,750HK$ 2,500
NO JOINING FEE
PR & PubCommittee
• Rinske Kuiper (chair) • Donna Mah • Monique de Raaij• Maarten Swemmer • Annemarelle van Schayik • Mike Spaan• Rogier van Veldhuizen
ChinaCommittee
• Michiel Mak (chair) • Rogier van Bijnen • Ewout Stumphius • James Donnan • Erwin Chan • Muriel Moorrees• Rogier van Veldhuizen
SMECommittee
• Jan Willem Möller (chair) • Paul Du Long • Antoine Fasse• Robbert Pauli • Jeffrey Broer • Rogier van Veldhuizen
TaxCommittee
• Willem Jan Hoogland (chair) • Eric Kampman • Harmen Rosing• Miranda Baas • Rogier van Veldhuizen
Women in BusinessCommittee
• Maaike van Meer • Claire Worp • Emily de Bruijn • Sandra Wu• Nerice Gietel • Muriel Moorrees
FinanceCommittee
• Michael van Ommeren (chair) • Lapman Lee • Litai Wai• Bram van den Bergh • Michiel van Voorst • Rogier Hekking • Hugo Sterkenburgh • Esther Verhoek • Muriel Moorrees
CreativeCommittee
• Saul Smeding (chair) • May Yeung • Anoeshka Krijnen • Marcel Heijnen • Annemarijn de Boer • Rogier van Veldhuizen
Young ProfessionalCommittee
• Alexander de Haseth • Vicki Chi • Ka Wai Tan • Chantal Rensing• Hidde van der Burg • Rogier van Veldhuizen
DutchCham Info
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With a longstanding presence in Asia Pacifi c and a strong global network, ABN AMRO is your trusted partner in a ever-changing world. Our expertise spans across Clearing, Coverage, Structured Finance and Corporate Finance, but we also have our network of International Desks. There we service our Dutch clients that are looking to expand their business in Asia Pacifi c. For more information, visit abnamro.com
Connecting the world with you
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